NEED
Definition The Need Gap is about finding the golden formula of how to create value for your customers. To work with innovation through identifying needs is, according to the innovation pioneer Anthony Ulwick, superior to innovating through coming up with ideas. Though, the need-approach is more likely to fail, since it is more complex (Ulwick, 2013). Since need-focused innovation is more efficient but also harder to implement, it is relevant for companies to work with it to exit the need gap. Customer value is subjective, dynamic and differs depending on the context the company is in. For companies to be successful in their need capacity, they must identify what it is that they do that creates value for their customers. Companies that are in a need gap does not understand their customers’ needs, or more specifically they do not understand how to make jobs done for their customers. So why is it interesting to know what creates value for customers? It is essential to be able to understand the key drivers that influence the customers’ buying behaviour and what jobs to be done for them. When companies have understood what drives customers’ buying actions, they may adopt their products and services to this new knowledge. If they find a good match, it may lead to the story of success. Diagnostic To determine whether or not a company is facing a need gap, a series of questions can be asked: Has your team identified all the potential customer segments and key stakeholders within each segment? Do you possess a thorough understanding of the key value drivers that influence behavior? Does the information help you prioritize the product development pipeline? Are you minimizing waster product development effort (time/$)? Case examples In 2008 the Indian car company Tata Motors, presented the pioneering model Tata Nano. The main characteristic of the car is its low price, which was just 2000 US Dollars at launch. This price made it the cheapest car in the world. Tata Nano was initially targeted to the fast growing middle class in India. The company behind it saw a massive purchasing power in this market. The company was able to produce a car this cheap because the Nano has only the very basic features. The first model had for instance no air conditioning, no airbags and only one wing mirror. Tata Nano is called “The people’s car”, since its affordable price make it possible for the big Indian mass to purchase it. The case of Tata Nano is a typical example of a when a company found a “job to be done” for a huge market, and made the job done. A lot of Indians from the middle class could not afford a car, so what Tata Motors did was to offer these people something they wanted but normally could not afford. Solution: Escaping the gap Analyze the customer activity chain for the different stakeholders Most companies try to innovate on products, but to be able to meet the different needs that go unnoticed, it is necessary to analyze the entire process that a customer goes through with the product. Starting from knowing where the need comes from, the purchase of the product and finishing with its disposal or usage of the service. It’s helpful to create empathy with the clients, understanding how their interaction with the product process develops. This is a tool that helps to discover customer needs, how can a company meet them and identify areas of opportunity to create value to the user. · Awareness of Need · Search · Selection · Order and purchase · Delivery · Payment · Financing · Receipt · Installation and Assembly · Storage & Transport · Use · Service · Repairs & Returns · Final Disposal. The chain focuses on analyzing each of the steps that occur in a consumer’s interaction with the product. There are 14 core divisions presented. These provide a more specific view of each stage in order to transform an area of weakness in an area of opportunity. Identify the key "jobs" and barriers that limit consumption Job map is a framework that can help a company know when all customer needs are captured for a given job. All functional jobs are processes and can be analyzed as such. Each process step can be analyzed with a determine metrics that customers are using to judge its successful execution. A job map is a visual description of a functional job, deconstructed into a process, which explains in detail what the customer is trying to get done. Jobs consist of some or all of eight fundamental process steps: define, locate, prepare, confirm, execute, monitor, modify and conclude. Once a job map is created for a specific functional job, customer needs must be captured for each step in the job map. Establishing need statements that describe issues related to the speed, stability, and output of each process step are captured, all needs are known. Identify the key outcomes that each stakeholder is aiming for Usually customers buy products to get jobs done, if a company wants to improve an existing product or create a new one, they must first discovery where the customer is struggling in the execution of a specific job. The metrics customers use to measure the successful execution of a job are called “desired outcomes”; they are customer needs. This outcomes can be discovered by personal interviews, focus groups, or ethnographic interviews. These are some steps that need to be followed in order to correctly discover customer’s outcomes: 1) Interviews should be focused not on what features the customers would like to see, but rather on the results they want to achieve in doing their jobs. 2) Interviews should deconstruct, step by step with details the process or activity associated with the product or service. 3) Once the process has been define, a careful selection of customers is needed to narrow interviews with specific groups of people directly involve with the product. 4) It’s important to select the most diverse set of individuals within every customer type. 5) The moderator needs to dig deep into customer’s words, clarifying and validating the statements. Making sure that participants consider every aspect of the process they go through when using the product or service. 6) Every time the customer tries to come up with a solution the moderator needs to redirect the question to for the participant to think about the process. A correct formatted outcome has the improvement required (minimize, increase) and a unit of measure (time, number, frequency). For example: “Minimize the time it takes to complete the procedure” Effectively communicate the key outcomes and opportunities to the new product & solution development team How can a company discover what are the most valuable areas to improve in a product or service? The best opportunities come from the desired outcomes that are important to customers but are not satisfied by existing offer. How can a company know in which desire outcome is an opportunity for creating value The opportunity algorithm can help: + (Importance – Satisfaction) = Opportunity Companies ask their clients to quantify on a scale of one to ten the importance of each desired outcome and the degree to which it is currently satisfied. Those rankings are inserted into the formula, resulting in an opportunity score. References [http://www.bibme.org/ "Tata Nano." Economist. N.p., n.d. Web. 1 Dec. 2013. ] [http://www.bibme.org/ "Turn Customer Input into Innovation."Harvard Buisiness Review X (2002): n. pag. EBSCO. Web. 2 Dec. 2013.] [http://www.bibme.org/ W. Ulwick, Anthony. "What is Out-Driven Innovation (ODI)." Strategyn X (2009): 18. Print.] "Proceso de Compra del Consumidor." Innóvame esta 1 (2012): 69. Print. [http://www.bibme.org/ "stakeholder." BusinessDictionary.com. N.p., n.d. Web. 2 Dec. 2013. ] [http://www.bibme.org/ Building a growth factory. Boston: Harvard Business School Publishing, 2012. Print.] https://www.gov.uk/service-manual/user-centered-design/user-research/ethnographic-research.html. Government United Kingdom. 2013-12-02, Etnographic research Ulwick Anthony. Category:INNOVATION GAPS